Why settle for a single benefit in a mutual fund when you can have the best of both? That’s right, investing in a hybrid mutual fund that combines the stability of debt with the growth of equity is not only a smart financial decision but a balanced one for twin benefits from one fund. But when there are so many hybrid or balanced funds available in the market, choosing among them all can be quite a task. Not to mention, hybrid classes encompass even commodities and international equities and at times, combine more than two asset classes. So the pool is vast and the options diverse. That’s why we have compiled a list of the top hybrid mutual funds to invest in to help you make an informed choice.
What To Look For In A Hybrid Fund
- Asset Allocation Mix (Equity vs Debt %): Look at how much the fund allocates to equity, debt and other assets
- Aggressive Hybrid Funds: 65–80% in equity (higher risk & return)
- Balanced Hybrid Funds: 50% in stocks which is best for medium to long term
- Conservative Hybrid Funds: 30-35% in stocks (lower risk & return), ideal for investors to park funds.
- Choose the type based on your risk appetite and investment horizon.
- Fund Manager Track Record: Review the experience and past performance of the fund manager. The fund manager maintaining a consistent performance across different market cycles is a good sign that the fun is well managed.
- Expense Ratio: A lower expense ratio means that more of your money stays invested. This is especially important for debt-heavy or conservative funds, where margins are lower.
- Risk-Adjusted Returns: Check if the fund is delivering better returns for the risk taken, the higher the better. A high ratio typically indicates that there is more return per unit of risk and a lower one means there is a more predictable performance.
- Past Performance Across Timeframes: Check 1-year, 3-year and 5-year returns because in investing consistency matters more than spikes, and compare with category average and benchmark index (like CRISIL Hybrid Index).
Who Should Invest in Hybrid Funds?
- New or Conservative Investors
- Moderate Risk Takers
- People with Medium-Term Goals (3–5 years)
- Retired or Near-Retirement Individuals
- Investors Seeking Automatic Diversification
Also read: High-Performing Equity Mutual Funds to Consider in 2025
Top 7 Hybrid Mutual Funds to Invest In 2025
1. JM Aggressive Hybrid Fund
- 1-Year Return: 6.77%
- 3-Year Return: 24.27%
- 5-Year Return: 28.07%
- Expense ratio: 0.56% as of 31st May 2025
- Strong long-term performance with a high equity allocation
- Suitable for investors with a moderate to high risk appetite seeking substantial growth over the medium to long term.
- The minimum amount required to invest in this fund via lump sum is ₹1,000 and via SIP is ₹100.
2. Bank of India Conservative Hybrid Fund
- 1-Year Return: 15.51%
- 3-Year Return: 23.38%
- 5-Year Return: 28.61%
- Expense ratio: 0.87% as of 31st May 2025
- Focuses on mid and small-cap equities, offering high growth potential.
- Suitable for investors with a high risk tolerance aiming for significant long-term capital appreciation
- Minimum amount required to invest in this fund via lump sum is 5000 and via SIP is 1000
3. Edelweiss Aggressive Hybrid Fund
- 1-Year Return: 17.38%
- 3-Year Return: 21.01%
- 5-Year Return: 23.59%
- Expense ratio: 0.39% as of 31st May 2025
- The fund encompasses a diversified equity portfolio, approximately 76% equity, with a mix of large, mid and small-cap stocks.
- Ideal for investors seeking long term growth, comes with a high risk exposure
- The minimum amount required to invest in this fund via lump sum is ₹100 and via SIP is ₹100.
4. ICICI Prudential Multi Asset Fund
- 1-Year Return: 16.05%
- 3-Year Return: 20.86%
- 5-Year Return: 25.5%
- Expense ratio: 0.67% as of 31st May 2025
- Invests across multiple asset classes, including equity, debt and other instruments like Exchange Traded Commodity Derivatives, Gold ETFs etc.
- Suitable for conservative investors looking for a diversified investment approach
- The minimum amount required to invest in this fund via lump sum is ₹5,000 and via SIP is ₹100.
5. HDFC Balanced Advantage Fund
- 1-Year Return: 11.52%
- 3-Year Return: 22.3%
- 5-Year Return: 26.16%
- Expense ratio: 0.77% as of 31st May 2025
- Employs a dynamic asset allocation strategy, adjusting equity and debt exposure based on market conditions.
- HDFC Balanced Advantage Fund Direct-Growth scheme’s ability to deliver returns consistently is higher than most funds of its category. Its ability to control losses in a falling market is high.
- The minimum amount required to invest in this fund via lump sum is ₹100 and via SIP is ₹100.
6. Quant Multi Asset Fund
- 1-Year Return: 10.47%
- 3-Year Return: 23.35%
- 5-Year Return: 34.31%
- Expense ratio: 0.6% as of 31st May 2025
- It is allocated such that approximately 49% is in equities, with the remainder in debt and commodities
- Ideal for investors seeking diversified exposure across asset classes with a moderate to high-risk appetite and those aiming for long-term capital appreciation through a balanced investment approach.
- Minimum amount required to invest in this fund via lump sum is 5000 and via SIP is 1000
7. Nippon India Multi Asset Fund
- 1-Year Return: 19.58%
- 3-Year Return: 22.26%
- 4-Year Return: 18.54%
- Expense ratio: 0.24% as of 31st May 2025
- Invests in a mix of equities, debt instruments and commodities like gold and silver ETFs.
- Investors looking for a diversified portfolio with exposure to multiple asset classes.
- Its ability to deliver returns consistently is higher than most funds of its category. Its ability to control losses in a falling market is high.
- The minimum amount required to invest in this fund via lump sum is ₹5,000 and via SIP is ₹100.
Written by Teertha Ravi
